Brand strategy

Member lesson

Brand equity

Lesson 18 of 20 in Brand strategy.

Philip Kotler on the importance of brand equity · LeadersIn
Lesson

Brand equity is the claim that a name has financial value on its own. The evidence is what happens in acquisitions: companies routinely pay far more than the factories, stock and cash are worth, and the accounts record the difference as named intangible assets, brands among them, with whatever is left over booked as goodwill.

the relauncheleven yearspart of it comesback, slowlytime →equity is the one brand asset you cannot buy back quickly
Recognition built slowly over years and dropped in a single relaunch.
A balance scale holds a heap of coins on one pan and a factory, van and crates on the other, with a small flag bearing a simple emblem added to bring the pans level.
A buyer's heap of coins outweighs the factory, van and crates until a small flag with the brand's emblem is added. That missing weight is what brand equity means.
Member

The rest of this is for members.

You have read the opening of this lesson. The rest of it comes with a membership.

One membership covers all four courses and Brands.

  • All lessons in the four Learn courses
  • All brand breakdowns in the Brands section
  • All quizzes, flashcards and crosswords
  • An AI teacher on every lesson, for up to 60 questions a day
  • All course material published during the membership

Price

Membership is from $12 a month on the Yearly plan, which is charged at $144 once a year. Lifetime access is $59, paid once.Membership is from ₹200 a month on the Yearly plan, which is charged at ₹2,400 + GST once a year. Lifetime access is ₹3,999 + GST, paid once.

Check what stuck

Members only

You can't take this check yet.

Members answer these 3 questions and keep the ticket for this lesson. Every lesson has one.

  1. Question 1, locked

    Which of these words means this? “The commercial value of the brand name itself, separate from the assets and the product.”

    • Brand equity
    • Vision
    • Mission
    • Tension
  2. Question 2, locked

    Which of these words means this? “What buyers will pay above an equivalent unbranded product. The most direct measure.”

    • Price premium
    • Physical availability
    • Mental availability
    • Distinctive asset
  3. Question 3, locked

    Which of these words means this? “The accounting term for what a buyer pays above the value of everything it can identify and price, brands included. Appears on a balance sheet only when a business is bought.”

    • Price premium
    • Goodwill
    • Brand equity
    • Disruption

Elsewhere in the library

Hear about new courses.

Leave an email and we will tell you when something new lands. We do not write often.